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| I am not from the OP's area but here 300 acres would have been $750,000 before things hit the fan and about $180,000 at the bottom. About 20 years ago that farm would have been $1,000,000 or a little more. Now it is probably around $4,000,000. I don't know for sure what the future holds but some how it will be more of the same. there will be some slow downs in appreciation I am sure. If I had $2,000,000 cash to put down on that farm and I was 40years old I would be scared to do it. Not because land could go down but because I would be obligated to pay over $200,000 in payments.+taxes. That's based on a loan that is less than 5% on $2,000,000. I don't think 5% is the market now. The last I heard low interest FSA type programs are capped at $600,000 per person. It is possible that The OP and his wife could each get $600,000 but I don't think that would keep the average down to to under 5%. My kids are at the age when they should be doing these things and they are. That Is why I know this off the top of my head. The two conclusions I come to are: 1) land is a dam good investment 2) If you are going to save for a down payment you need to start with a small piece so you can get into it soon because the amount of the down payment can get away from you fast. Small purchases and 1031 Exchanges are your friend. I don't own 800 acres and I have made over 15 purchases/trades so far.
The reason I thought that the OP was as old as me he was talking about he and his wife. Then in the next sentence he mentioned farming the ground since the early 80s.
Edited by BlueRonin63 3/31/2024 11:53
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How can a young farmer afford ground?
